Bank of Valletta has stressed that their decision to remove custodian services for assets worth less than €4 billion is in no way related to the Falcon Funds case, but rather formed part of a “holistic transformation programme”.
Falcon Funds refers to the €80 million fraud of a Swedish pension fund that was run from Malta. BOV is strongly refuting any liability in the case.
“The aim [of the programme] is to lower the Bank’s risk profile and thus ensure its long term sustainability,” BOV CEO Mario Mallia told Lovin Malta.
The programme has a multi-million euro budget and is being executed with the help of two global consultancy firms, and everything is being overseen by a transformation committee.
As reported by Lovin Malta, BOV had already announced that it would cut down on unprofitable non-core business and this, Mallia said, includes international corporate and personal deposits, custody services, and trust services.
“Other objectives of the transformation programme include the strengthening of strategic planning, risk management, anti-financial crime, and compliance,” Mallia explained.
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